Gas prices in the United States have surged to their highest level since 2022, averaging $4.55 per gallon, as Americans prepare for Memorial Day weekend travel according to multiple reports.
Key Takeaways
Gas prices in the United States have reached their highest level since 2022, averaging $4.55 per gallon as Memorial Day weekend approaches. This surge is attributed to geopolitical tensions and increased demand during the summer travel season.
- U.S. gas prices hit a four-year high at $4.55 per gallon.
- California has the highest average price at $6.13, while Mississippi has the lowest at $4.01.
- Prices could rise further if the Strait of Hormuz remains closed.
- Americans are expected to spend $2 billion more on gasoline over Memorial Day weekend compared to last year.
- Summer travel plans are being adjusted due to high fuel costs.
The price hike is more than 50% higher compared to late February before the conflict with Iran began, and it's expected to impact millions of travelers this holiday weekend. California has the highest average price at $6.13, while Mississippi has the lowest at $4.01 as reported by AAA.
The closure of the Strait of Hormuz due to the ongoing war with Iran is a significant factor driving up prices, according to Patrick De Haan, head of petroleum analysis at GasBuddy. If the strait remains closed, average gas prices could rise to $5 per gallon in June.
The surge in fuel costs has led Americans to spend approximately $2 billion more on gasoline over Memorial Day weekend compared to last year, De Haan noted. The conflict with Iran has also contributed to a 40% spike in U.S. crude oil prices from pre-war levels.
Despite the high gas prices, analysts have observed that gasoline consumption remains relatively strong. However, they caution about potential supply shortages as the summer travel season approaches due to recent refinery outages and tightening global inventories.
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